What is employment practices liability insurance?
The insurance concept is pretty simple. We buy insurance to protect us from loss.
Where things can get confusing is when the talk turns to specific coverages. Take, for instance, Employment Practices Liability Insurance, which your agent may refer to as EPLI. If you run a business with employees, EPLI is almost certainly a must-have, even for businesses with only a few employees.
But what is it? And why do you need it?
EPLI protects businesses from the losses that could result from hiring and dismissing employees, harassment, and promotions and demotions. In today’s litigious society, these types of claims have become more frequent and at times costly to employers. While coverages can vary, generally EPLI protects against:
- Wrongful termination
- Wrongful demotion
- Defamation of character
- Acts that invade employees’ right to privacy
- Failure to promote a qualified employee
When purchasing EPLI coverage, businesses may want to look for a company that offers free value-added features that complement the protection with:
- Consultative services for employment practices questions
- Templates of employment and human resources documents
- Self-audit checklists
- Educational articles and resources
For employers both large and small, EPLI provides exceptional peace of mind and premiums are quite reasonable. To learn more about the coverage, speak with your independent insurance agent.